China Tells U.S. To Slow Money Printing Presses

“A senior Chinese official said on Friday that the United States should cut back on printing money to stimulate its economy if the world is to have confidence in the dollar.”

“Asked whether he was worried about the dollar, the chairman of China’s sovereign wealth fund, the China Investment Corporation, Jin Liqun, told the World Economic Forum in Davos: “I am a little bit worried.””

“Jin said he was confident that the Obama administration and Congress would ultimately solve the debate over the so-called fiscal cliff, “but of course the printing machine will have to slow down for people to have full confidence in the dollar“.”

“China is the biggest purchaser of U.S. Treasury bonds, using its enormous foreign currency reserves primarily to buy U.S. securities as a long-term investment.”

“Speaking at the same session, French Finance Minister Pierre Moscovici voiced concern that the euro was becoming overvalued as a result of quantitative easing and other stimulus actions taken by other nations’ central banks.“